Sizemasters Technology Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

2.16 Provisions, Contingent Liabilities and Capital Commitments

Provisions are recognized when the Company has a present obligation(legal or constructive) as a result of past
event & it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation & in respect of which a reliable estimate can be made of the amount of obligation. If the effect of
the time value of money is material, Provisions are discounted and reflected at present value. The discount rate
used to determine the present value is a pre-tax rate that reflects current market assessment of the time value
of money and the risks specific to the liability. When discounting is used, the increase in provision due to
passage of time is recognized as interest expense.

Contingent liabilities are possible obligations whose existence will only be confirmed by future events not
wholly within the control of the Company, or present obligations where it is not probable that an outflow of
resources will be required or the amount of the obligation cannot be measured with sufficient reliability.

Contingent liabilities are not recognized in the financial statements but are disclosed unless the possibility of
an outflow of economic resources is considered remote.

Contingent liabilities and Capital Commitments disclosed are in respect of items which in each case are above
the threshold limit.

2.17 Segment reporting

Segment Reporting is not applicable as there are no Operating Segments

2.18 Revenue recognition

The Company recognises revenue as per IND AS 115. Revenue is recognised to the extent that it is probable
that economic benefits will flow to the Company and revenue can be reliably measured, regardless of when
the payment is being made. Revenue is measured at the fair value of the consideration received or receivable,
taking in to account contractually defined terms and excluding taxes or duties collected on behalf of
government.

"i) The sale of product is accounted for net of GST. Revenue is recognized when the significant risks and
rewards of ownership have been transferred and there is no managerial involvement and effective control over
the goods.

Revenue represents net value of goods and services provided to customers after deducting for certain
incentives including, but not limited to discounts, volume rebates, incentive programs etc. For incentives
offered to customers, the Company makes estimates related to customer performance and sales volume to
determine the total amounts earned and to be recorded as deductions. The estimate is made in such a manner,
which ensures that it is highly probable that a significant reversal in the amount of cumulative revenue
recognised will not occur. The actual amounts may differ from these estimates and are accounted for
prospectively. No element of significant financing is deemed present as the sales are made with a credit term,
which is consistent with market practice."

ii) Interest income is recognized using the effective interest rate method when it is probable that economic
benefits associated with the transaction will flow to the Company and the amount of revenue can be measured
reliably as set out in Ind AS 109 - Financial instruments : recognition and measurement. The effective interest
method is the method of calculating amortized cost of a financial asset and of allocating the interest income
over the relevant period.

2.19 Government grants

Government grants are recognised when there is reasonable assurance that the grant will be received and all
attached conditions will be complied with. Government grant related to expense item is recognised as income
on a systematic basis over the period that the related cost for which it is intended to compensate are expensed.

When the grant relates to Property, plant and equipment they are included in non current liability as deferred
income and is recognized as an income in the equal amount over expected useful life of the related asset.

2.20 Employee Benefits

2.20.1 Short term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within
twelve months after the end of the period in which the employees render the related service are recognised in
respect of employee services up to the end of the reporting period and are measured at the amounts expected
to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligation
in the balance sheet.

2.20.2 Other long-term employee benefit obligation

The liabilities for earned leave is not expected to be settled wholly within twelve months after the end of the
period in which the employees render the related service. They are therefore measured at the present value of
expected future payments to be made in respect of services provided by employees up to the end of the
reporting period using the projected unit credit method. The benefits are discounted using the market yield at
the end of the reporting period that have terms approximating to the terms of the related obligations.

Remeasurements as a result of the experience adjustments and changes in actuarial assumptions are recognised
in profit or loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an
unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when
the actual settlement is expected to occur.

2.20.3 Post-employment Obligations
Gratuity

The Group accounts for the net present value of its obligations for gratuity benefits, based on independent
actuarial valuations, determined on the basis of the projected unit credit method, carried out as at the Balance
Sheet date. The obligation determined as aforesaid less the fair value of the plan assets is reported as a liability
or asset as of the reporting date. Actuarial gains and losses are recognized immediately in Other
Comprehensive Income and reflected in retained earnings and will not be reclassified to the Statement of Profit
and Loss.

In case of funded scheme, the Group makes annual contributions to gratuity funds administered by the trustees
for amounts notified by the funds in respect of eligible employee in case of certain domestic components and
the parent company.

2.21 Borrowing Costs

Company capitalises borrowing costs the are directly attributable to the acquisition, construction or production
of a qualifying asset as a part of that asset. Company recognises other borrowing costs as an expense in the
period in which it incurred them. Borrowing costs are interest and other costs that the company incurred in
connection with the borrowing of funds including exchange differences arising from foreign currency
borrowings to the extent that they are regarded as an adjustment to interest costs.

A qualifying asset is an asset that takes substantial period of time to get ready for its intended use or sale.

2.22 Lease

In March 2019, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards)
(Amendments) Rules, 2019, notifying Ind AS 116 -‘Leases’. This standard is effective from 1st April,2019.
The Standard sets out the principles for the recognition, measurement, presentation and disclosure of leases
for both parties to a contract i.e., the lessee and the lessor. Ind AS 116 introduces a single lessee accounting
model and requires a lessee to recognize assets and liabilities for all leases with a term of more than twelve
months, unless the underlying asset is of low value or in case of few exceptions.

According to the standard all operating leases (with a few exceptions) must therefore be recognized in the
balance sheet as lease assets and corresponding lease liabilities should be recognised. The lease expenses,
which were recognised previously as a single amount (operating expenses), hereafter will consist of two
elements: depreciation and interest expenses.

The Company measures the lease liability at the present value of the lease payments that are not paid at the
commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease,
if that rate can be readily determined. If that rate cannot be readily determined, the Company uses its weighted

average incremental borrowing rate.

"For short-term and low value leases, the Company recognises the lease payments as an operating expenses
on a straight line basis over the lease term.

The standard has become effective from 2019 and the Company has accordingly applied provisions of IND AS
116 in respect of those leases where applicable."

2.23 Earnings per share

2.23.1 Basic earnings per share

Basic earnings per share is calculated by dividing net profit or loss after tax attributable to ordinary equity
shareholders ( numerator) by weighted average number of ordinary shares outstanding (denominator) during
the period.

2.23.2 Diluted earning per share

For the purpose of calculating diluted earnings per share, net profit or loss after tax for the year attributable to
equity shareholders and the weighted average number of equity shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.

2.24 Cash dividend distribution to equity holder of the Company

The Company recognises a liability to make cash or non cash distributions to the equity holders of the Company
when the distribution is authorised and the distribution is no longer at the discretion of the Company. As per
the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A
corresponding amount is recognised directly in equity, upon such approval.

2.25 Critical accounting judgements and key sources of estimation uncertainty

The preparation of the Company''s financial statements requires management to make judgement, estimates
and assumptions that affects the reported amounts of revenues, expenses, assets and liabilities, and the
accompanying disclosures, and the disclosures of contingent liability. Uncertainties about these estimates
could results in outcome that requires a material adjustment to the carrying amount of the assets or liabilities
affected in future periods.

Key assumptions:

The key assumptions concerning the future and other key sources of estimation of uncertainty at the reporting
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year are described below. The Company based its assumptions and estimates
on parameters available when the financial statements were prepared. Existing circumstances and assumptions
about future developments, however, may change due to market changes or circumstances arising that are
beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

(a) Allowance for doubtful debts -

The Company makes allowances for doubtful debts based on an assessment of the recoverability of the trade
and other receivables. The identification of doubtful debt requires use of judgements and estimates. Where the
expectation is different from the original estimates, such difference will impact the carrying value of the trade
and other receivables and doubtful debt expenses in the period in which such estimates has been changed.

(b) Fair value measurement of financial instruments -

When the fair values of financial assets and financial liabilities recorded in the balance sheet can not be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques
including the Discounted Cash Flow model. The inputs to these models are taken from observable markets
where possible, but where this is not feasible, a degree of judgement is required in establishing fair values.
Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.

(c) Impairment of assets -

The Company has used certain judgements and estimates to estimate future projections and discount rates to
compute value in use of cash generating unit and to assess impairment.

(d) Defined Benefit Plans and provision for leave encashment -

The cost of the defined benefit gratuity plan, present value of gratuity obligation and present value of leave
encashment obligation are determined using actuarial valuations. An actuarial valuation involves making
various assumptions that may defer from actual developments in the future. These includes the determination
of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the
valuation and its long term nature, a defined benefit obligation and leave encashment provision is highly
sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

(a) Terms and rights attached to the
equity shares:

The Company has only one class of equity shares having par value of Rs.10/- each. Each holder of
equity shares is entitled for one vote per share. Distribution of dividends and repayment of capital, if
any, by the company, shall be subject to the provisions of applicable laws.

The Company’s Board of Directors has the overall responsibility for the establishment and oversight of the
Company’s risk management framework.

The Company’s risk management policies are established to identify and analyse the risk faced by the
Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market conditions and the
Company’s activities. The Board of Director oversees how management monitors compliance with the
Company’s risk management policies and procedures, and reviews the adequacy of the risk management
framework in relation to the risks faced by the Company.

The Company has exposure to the following risks arising from
financial instruments:

- Credit risk

- Liquidity risk

- Market risk

Credit Risk

Credit risk arises from the possibility that customers or counterparty to financial instruments may not be
able to meet their obligations. To manage this, the Company periodically assesses the financial reliability
of customers, considering the financial condition, current economic trends, analysis of historical bad debts
and ageing of accounts receivable. Credit risks arises from cash and cash equivalents, deposits with banks,
financial institutions and others, as well as credit exposures to customers, including outstanding receivables.

The Company’s policy is to place cash and cash equivalents and short-term deposits with reputable banks
and financial institutions.

The Company has established a credit policy under which each new customer is analyzed individually for
creditworthiness before entering into contract. Credit limits are established for each customer, reviewed
regularly and any sales exceeding those limits require approval from the appropriate authority. There are
no significant concentrations of credit risk within the Company.

Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s
approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet
its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to Company’s reputation.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents
on the basis of expected cash flows to ensure it has sufficient cash to meet operational needs while
maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the
Company does not breach borrowing limits or covenants on any of its borrowing facilities, Such forecasting
takes into consideration the Company’s debt financing plans, covenant compliance and compliance with
internal statement of financial position ratio targets.

Market Risk

Market risk is the risk that the changes in market prices such as foreign exchange rates, interest rates and
equity prices will affect the Company’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimizing the return.

In the opinion of the Board, the current assets, the loan and advances have a value on realization in the ordinary
course of business at least equal to the amount at which they are stated in the balance sheet and provision for
the all the known liabilities has been made, subject to and read with the notes, at the reliable amounts. The
management is confident of recovery of all the amounts which are due for more than six months and so no
provision for the same has been done in books of accounts, except for which provision are made in books of
accounts.

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August
2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with
its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in
accordance with the ‘Micro, Small and Medium Enterprises Development Act, 2006’(‘the Act’). Accordingly,
the disclosure in respect of the amounts payable to such enterprises as at 31 March, 2026 has been made in the
financial statements based on information received and available with the Company. Further in view of the
Management, the impact of interest, if any that may be payable in accordance with the provisions of the Act is
not expected to be material. The Company has principal dues but no interest dues to any micro and small
enterprises as at 31 March, 2026 (31 March 2025: Rs Nil ).

NOTE NO 36: Balance of Debtors and Creditors are subject to confirmations and reconciliations if any.NOTE NO 37: Corporate Social Responsibility

As per the provision of Section 135 of Companies Act 2013, Corporate social Responsibility is not applicable

to the company

NOTE NO 38: Other Statutory Information

(i) The Company do not have any Benami property, where any proceeding has been initiated or
pending against the Company for holding any Benami property.

(ii) The Company do not have any transactions with companies whose name has been struck off.

(iii) The Company do not have any charges or satisfaction which is yet to be registered with Registrar

of Companies (ROC) beyond the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the year.

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies),

including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vi) The Company has not received any fund from any person(s) or entity(is), including foreign
entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that
the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(vii) The Company has not any such transaction which is not recorded in the books of accounts that
has been surrendered or disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income
Tax Act, 1961

(viii) The Company has not obtained borrowings from banks or financial institutions on the basis of
security of current assets during the year.

(ix) The Company has not defaulted on any loans obtained from banks or financial
institutions.

(x) The Company has complied with the restriction on number of layers prescribed under the
Companies Act read with Companies (Restriction on number of Layers) Rules, 2017.

NOTE NO 39: Previous year figures have been regrouped, re-arranged and re-classified wherever
necessary.NOTE NO 40: Rounding off amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Crore as per
the requirement of Schedule III, unless otherwise stated.

20.1 The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of Companies (ROC) beyond the statutory period.

20.2 Short term borrowings raised from Promotor during the financial year 2022-23 for working capital purpose. The loan is free of interest and is repayable on demand.

20.3 The Company has not raised any borrowing from banks and financial institutions during the year

20.4 The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a wilful defaulter at any time during the financial year or after the end of reporting period but before the date when financial statements are approved.

20.5 The Company has not defaulted on repayment of loans and interest payment thereon during the current and previous year.

22.1 As defined under Micro,Small and Medium Enterprises Development Act, 2006, the disclosure in respect of the amount payable to such enterprises as at March 31,2024 has been made in the financial statement based on information received available and identified by the company.

The Company is having less than 10 Employees, Hence The Employee Gratuity Plan is not applicable to the Company.

3 Ind AS 116 ” " " " ----

7 Leases ”

Operating lease where Company is a lessee:

The Company has entered into non-cancellable operating lease for factory premise. Effective April 01, 2019, the Company adopted Ind AS 116 "Leases". In accordance with provisions of Ind AS 116 "Leases", the Company recognised the lease liability at the date of initial application i.e. April 01, 2019 at the present value of lease payments, discounted using incremental borrowing rate of the Company. The Company recognised right-of-use asset at an amount equal to the lease liability. Right-of-use asset is depreciated on straight line method based on balance number of months of lease term.

The adoption of the standard resulted in recognition of lease liability of ? Nil Lakh and corresponding ''Right of use'' asset of ^ Nil Lakh as at April 01, 2019.

The weighted average incremental borrowing rate applied to lease liabilities is 9.00%.

Following practical expedients were elected on initial application of the Standard:

(i) Not to apply this standard to contracts that were not previously identified as containing a lease in terms of IND AS 17

(ii) Applied exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease term on the date of initial application

(iii) Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.

3 Segment 9_ information

Operating Segment: - The company is primarily engaged in the activities of Manufacturing and Trading. Since all activities are related to one segment, there is no other operating segment as per the Ind AS 108 “Operating Segments".

The financial instruments are categorized in to three levels based on the inputs used to arrive at fair value measurements as described below -

Level 1 - Quoted prices in active markets for identical assets and liabilities.

Level 2 - Inputs other than the quoted prices included within level 1 that are observable for assets or liability either directly or indirectly.

Level 3 - Inputs based on unobservable market data

Management uses its best judgement in estimating fair value of financial instruments. However there are inherent limitations in any estimation techniques. Therefore for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the company could have realised or paid in sale transactions as on respective date. As such the fair value of financial instruments subsequent to the reporting date may be different from the

amounts reported at each reporting date

The Company''s senior management oversees the management of these risks. The senior management assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the company.

i. Credit Risk

Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments.

Trade

Receivable:

Customer credit risk is managed subject to the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored.

Cash and cash equivalents:

Bank deposits are made with reputed banks and hence credit risk associated with it is generally low.

ii. Liquidity Risk

Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligations on time. The company''s approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liability when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company''s reputation.

The table below analysis the company''s financial liabilities into relevant maturity grouping based on their contractual maturities

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from change in the price of financial instruments. Market risk comprises of three types of risks: interest risk, foreign currency fluctuation risk and other price risk such as commodity price risk. The objective of market risk management is to manage and control market risk exposure within acceptable parameters while optimizing profits.

a) Foreign currency risk:

The summary of quantitative data about the Company''s exposure to currency risk is as follows:

4 The Company has not advanced any loans or advances in the nature of loans to specified

6 persons viz. promoters, directors, KMPs, related parties; which are repayable on demand or where the agreement does not specify any terms or period of repayment.

4 The Company has not advanced or loaned or invested funds to any other person(s) or

7 entity(ies), including foreign entities (Intermediaries) with the understanding that the

Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

4 The Company has not received any fund from any person(s) or entity(ies), including foreign

8 entities (Funding Party) with the understanding (whether recorded in writing or otherwise)

that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

4 The Company does not have any transaction which is not recorded in the books of accounts 9 but has been surrendered or disclosed as income during the year in the tax assessments under

the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961). ^

5 The Company has not traded or invested in Crypto currency or Virtual Currency during the

0 financial year.

5 Disclosure related to Struck-Off Companies

1

There are no transactions and / or disputed balances outstanding with companies struck off under section 248 of the Companies Act, 2013.

5 Dividends 2_

The Company has not proposed, declared or paid the Dividend during the year ended March 31, 2025 and March 31, 2024 _

The Code on Social Security,2020 (''Code'') relating to employee benefits during employment and post employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

5 Recent

5_ pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. The Ministry of Corporate Affairs (MCA), pursuant to a notification dated May 7th 2025, has amended Ind AS 21 to provide guidance on determining the exchange rate when a currency is not exchangeable. The amendment is applicable for annual periods beginning on or after April 1, 2025, with early application permitted.

The Company is currently evaluating the impact of this amendment on its financial statements and expects to complete the evaluation before the effective date. At present, the Company does not anticipate any material impact; however, a detailed assessment is ongoing.

15.1 Terms / rights attached to equity shares:

The company has only one class of equity shares having a face value of ? 10/- per share. Each holder of equity share is entitled to one vote per share. In the event of Liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

20.1 The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of Companies (ROC) beyond the statutory period.

20.2 Short term borrowings raised from Promotor during the financial year 2022-23 for working capital purpose. The loan is free of interest and is repayable on demand.

20.3 The Company has not raised any borrowing from banks and financial institutions during the year

20.4 The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a wilful defaulter at any time during the financial year or after the end of reporting period but before the date when financial statements are approved.

20.5 The Company has not defaulted on repayment of loans and interest payment thereon during the current and previous year.

The Company is having less than 10 Employees, Hence The Employee Gratuity Plan is not applicable to the Company.

37 Ind AS 116 ”

Leases ”

Operating lease where Company is a lessee:

The Company has entered into non-cancellable operating lease for factory premise. Effective April 01, 2019, the Company adopted Ind AS 116 "Leases". In accordance with provisions of Ind AS 116 "Leases", the Company recognised the lease liability at the date of initial application i.e. April 01, 2019 at the present value of lease payments, discounted using incremental borrowing rate of the Company. The Company recognised right-of-use asset at an amount equal to the lease liability. Right-of-use asset is depreciated on straight line method based on balance number of months of lease term.

The adoption of the standard resulted in recognition of lease liability of ? Nil Lakh and corresponding ''Right of use'' asset of ? Nil Lakh as at April 01, 2019.

The weighted average incremental borrowing rate applied to lease liabilities is 9.00%.

Following practical expedients were elected on initial application of the Standard:

(i) Not to apply this standard to contracts that were not previously identified as containing a lease in terms of IND AS 17

(ii) Applied exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease term on the date of initial application

(iii) Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.

39 Segment information

Operating Segment: - The company is primarily engaged in the activities of Manufacturing and Trading. Since all activities are related to one segment, there is no other operating segment as per the Ind AS 108 “Operating Segments”.

40 Corporate Social Responsibility expenditure

Section 135 of the Act is Not Applicable to the Company.

41 Details of Corporate Social Responsibility (CSR) expenditure

Section 135 of the Act is Not Applicable to the Company. No Corporate social responsibility expense incurred in current as well as previous years.

The financial instruments are categorized in to three levels based on the inputs used to arrive at fair value measurements as described below -

Level 1 - Quoted prices in active markets for identical assets and liabilities.

Level 2 - Inputs other than the quoted prices included within level 1 that are observable for assets or liability either directly or indirectly.

Level 3 - Inputs based on unobservable market data

Management uses its best judgement in estimating fair value of financial instruments. However there are inherent limitations in any estimation techniques. Therefore for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the company could have realised or paid in sale transactions as on respective date. As such the fair value of financial instruments subsequent to the reporting date may be different from the amounts reported at each reporting date.

B) Financial Risk Management

The company has a exposure to the following risks arising from financial instruments -

- Credit risk

- Liquidity risk

- Market risk

Risk

Management

The Company''s senior management oversees the management of these risks. The senior management assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the company.

i. Credit Risk

Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments.

Trade

Receivable:

Customer credit risk is managed subject to the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored.

Cash and cash equivalents:

Bank deposits are made with reputed banks and hence credit risk associated with it is generally low.

ii. Liquidity Risk

Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligations on time. The company''s approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liability when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company''s reputation.

iii. Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from change in the price of financial instruments. Market risk comprises of three types of risks: interest risk, foreign currency fluctuation risk and other price risk such as commodity price risk. The objective of market risk management is to manage and control market risk exposure within acceptable parameters while optimizing profits.

a) Foreign currency risk:

43 Capital

Management

The Company''s objectives when managing capital are to (a) maximize shareholders'' value and provide benefit to other stakeholders and (b) maintain an optimal capital structure to reduce the cost of capital.

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders.

46 The Company has not advanced any loans or advances in the nature of loans to specified persons viz. promoters, directors, KMPs, related parties; which are repayable on demand or where the agreement does not specify any terms or period of repayment.

47 The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries)

or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

48

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

49 The Company does not have any transaction which is not recorded in the books of accounts but has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

50 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

⁵¹ Disclosure related to Struck-Off Companies

There are no transactions and / or disputed balances outstanding with companies struck off under section 248 of the Companies Act, 2013.

52 Dividends

The Company has not proposed, declared or paid the Dividend during the year ended March 31, 2024 and March 31, 2023

53 Ratio Analysis

Note 1 - Increase in business activity which leads to increase and other current assets and liabilities

Note 2 - Increase in Short term unsecured loan taken from promotor and lease liability as per Ind AS 116

Note 3 - Increase in Profitability due to better margins from new manufacturing and trading activity during the year.

Note 4 - Increase in manufacturing and trading activity which leads to increase in purchases during the year.

Note 5 - Increase in revenue from operations and also increase in current assets & current Liablities as refered in note 1 above.

Note 6 - Increase in deposits in bank during the year.

54 Update on Code on Social Security, 2020

The Code on Social Security,2020 (''Code'') relating to employee benefits during employment and post employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

55 Recent pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1, 2023, as below:

Ind AS 1 - Presentation of Financial Statements

The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The Company does not expect this amendment to have any significant impact in its financial statements.

Ind AS 12 - Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company is evaluating the impact, if any, in its financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The Company does not expect this amendment to have any significant impact in its financial statements.

56 Previous years'' figures have been regrouped/rearranged, wherever necessary.